J&K Bank signs agreement with EPFO, to act as pension disbursement agent

Srinagar: Jammu and Kashmir Bank has entered into an agreement with the Central Board of Trustees of Employees & Provident Fund Organization (EPFO), according to which the latter has appointed and authorized J&K’s premier financial institution as their agent for the purpose of disbursement of pension under the Employees’ Pension Scheme 1995.

The agreement that will come into effect from Arpil 1, 2021 was signed by President Government Business Operations Rakesh Koul on behalf of J&K Bank and Regional Provident Fund Commissioner – II (Jammu) K. Ramesh, who represented The Central Board.

As per the tie-up, the Bank's three Business Units- Residency Road Srinagar, Shalimar Road Jammu and Leh Main Ladakh- have been designated as Link Branches where Trustees’ Saving accounts for the disbursement of the pension will be maintained.

Terming the agreement an important milestone in collaboration President Rakesh Koul said, “Trusted institution like the Central Board of Trustees of EPFO appointing J&K Bank as their agent to disburse the pension is a strong recognition of Bank's reputation and remarkable range of its offerings. The trust and reliability has been earned over the years by exhibiting professionalism and performance while empowering the region through effective financial intermediation besides providing world class banking and allied services. In our long journey, collaboration with EPFO is a huge development and is going to benefit our people.”

Speaking on the occasion, the EPFO Central Board K Ramesh said that J&K Bank was very important financial institution with largest net work in the region adding, “the tie-up will help large number of pensioners.”

Notably, the EPFO had chosen J&K Bank as one of the banks for collection of provident fund in the country after two parties signed an MoU in August, last year. The agreement enabled the Bank to serve as central bank account for online collection of contribution, dues, damages, remittance, payment or charges payable to the Central Board by an employer, an establishment, a person or any other entity, having bank account with J&K Bank.